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Major Supply Chain improvements require just a small change in design.
Improvement projects in supply chain need not be overtly complicated. In fact, most improvements require just a small change in a policy, process or practice. Of course, it is important to first identify which one is coming in the way.
Let’s take an example. A company believed in pushing all their finished goods to the CFAs to improve their ability to serve sudden surges in customer demands. However, they suffered from both stockouts as well as surplus inventory. Once they realised that pushing stocks down the supply chain was the reason for this mismatch, they decided to hold the stocks upstream and push it down only to fill the downstream inventory buffers. A simple change in policy had a dramatic impact on product availability as well as product freshness.
Would love to hear from you how a small change in a policy, process or practice led to significant improvements in supply chain performance…